In Order to Generate More Accurate Results When Using Simulation

question 3

Multiple Choice

In order to generate more accurate results when using simulation:

• A)use a continuous distribution instead of a discreet distribution
• B)increase the number of replications
• C)increase the number of factors considered
• D)All of the above
• E)None of the above

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Definitions:

Market Value

The ongoing rate for purchasing or selling a good or service in the marketplace.

Inventory Valuation Method

A system used by businesses to assess the cost of their inventory, affecting financial statements and taxation.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from the net sales, representing the profit from sales before deducting operating expenses.

LIFO

An inventory valuation method that assumes the last items placed in inventory are the first ones sold, standing for Last In, First Out.